DBRS confirms Potash ratings

DBRS said it confirmed the BBB (high) senior unsecured debt rating and the R-1 (low) commercial paper rating, both with stable trends, of Potash Corp. of Saskatchewan Inc.

The company's status as the leading producer of potash fertilizers is complemented by a strong U.S.-based phosphate fertilizer/industrial products business and a low-cost nitrogen-based fertilizer/industrial supply business focused on the North American market, the agency said.

High capital expenditures and share repurchase programs have increased the proportion of gross debt in the company's capital structure from under 20% at the end of 2007 to the current 37% despite strong operating cash flows, DBRS noted.

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